Advanced Driver Assistance Systems (ADAS) Market - Growth, Trends, and Forecast (2017 - 2022)

Advanced Driver Assistance Systems (ADAS) Market - Growth, Trends, and Forecast (2017 - 2022)

Samsung, one of the largest smartphone manufacturers, plans to enter the connected car market. The company has established a Samsung automotive innovation fund of about USD 300 million to invest in tech startups and has already invested in TTTech, an Austria- based safety software and platform creator. Similarly, since the beginning of 2017, Ford and Volkswagen have also invested USD 1 billion and USD 180 million, respectively, in such companies.

The advanced driver assistance systems (ADAS) market was valued at USD 22.69 billion in 2015 and is projected to reach USD 78.19 billion by 2020, at a CAGR of over 28% during 2017-2022 (the forecast period). The demand for fuel-efficient vehicles, along with an increasing need for road safety systems, are expected to boost the global demand for ADAS significantly.

Over the last few years, growing concerns about automotive safety among consumers has resulted in high demand for advanced safety features, especially for low and mid-price segment vehicles. The dynamics of the global automotive industry are also changing rapidly. Automobile manufacturers expect that the demand for mid-price segment cars will increase by 20% by 2020. These vehicles are equipped with basic components that have been designed and manufactured as per consumer preferences. ADAS manufacturers, like Autoliv and Continental, are collaborating with OEMs to develop and manufacture low-cost driver assistance systems. The move is expected to help manufacturers to attain economies of scale and reduce the price of ADAS, and thereby, increase implementation of ADAS in low-cost cars in the future. A consistent increase in the demand for compact and mid-size automobiles, equipped with advanced safety features, is also expected to propel the market’s growth.

Driver Assistance Systems- Factors Influencing  growth of the market.

The development of driver assistance systems is governed and regulated by international safety standards, like IEC-61508 and ISO-26262, as these systems depend on electronics for their functionality. In the United States, the FMCSA aims to reduce the number of fatalities and accidents involving passenger vehicles, large trucks, and buses. The key safety goal of the US federal motor carrier safety administration (FMCSA) is to reduce the number and severity of commercial motor vehicle (CMV) crashes. To achieve this goal, the FMCSA has collaborated with the truck industry to test, evaluate, and facilitate the use of various onboard safety systems for commercial vehicles to improve the safety of pedestrians. In addition, initiatives, like the national highway traffic safety administration (NHTSA)'s safecar Project, have helped to significantly drive the adoption of ADAS systems in domestic vehicles of North America, in turn acting as a driver for the market growth in the region.

The European automotive industry is one of the major and most innovative automotive markets in the world. With a massive transformation in the industry post the recession period of 2010, there has been rapid market penetration and mass adoption of ADAS among customers. There are regular upgrades in the ADAS technology that facilitate competitiveness in the market, making it one of the largest markets in the global ADAS industry.

The growth of the ADAS market is currently hindered by the growing incidence of software failures in sensors, coupled with the high costs of these systems that have acted as major frictional factors for the wide acceptability of these systems. However, the rapidly expanding hybrid and electric vehicle market, along with the growth of the autonomous vehicles, are expected to help augment the ADAS in these vehicles, thereby driving the growth of the market significantly, during the forecast period.

The global ADAS market is segmented on the basis of type, technology, and geography.

On the basis of geography, the market has been segmented into North America (United States, Canada, others), Europe (Germany, United Kingdom, France, Italy, Spain, Russia, others), Asia-Pacific (China, Japan, India, Australia, South Korea, others), Middle East & Africa (UAE, Saudi Arabia, Israel, others), and Latin America (Brazil, Argentina, Mexico, others).

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